Good Company

On the faulty intellectual origins of shareholder primacyand how policy can win back whats been lost. In an era of shareholder primacy, share price is king. Businesses operate with short-term goals to deliver profits to shareholders, enjoying stability (and bonuses) in the process. While the public bemoans the doctrine for its insularity and wealth-consolidating effects, its influence over corporate governance persists. Good Company offers an exacting argument for why shareholder primacy was never the right model to follow for truly understanding how corporations operate. Lenore Palladino shows that corporations draw power from public chartersagreements that allow corporations to enjoy all manner of operational benefits. In return, companies are meant to innovate for the betterment of the societies that support them. However, that debtincreasingly wielded for stock buybacks and shareholder bonusesis not being repaid. Palladino theorizes a modern corporation that plays its intended role while delivering social and economic good in the process and offers tangible policy solutions to make this a reality. Good Company is both an expert introduction to the political economy of the firmas it was, as it is, as it can beand a calibrating examination of how public policy can shape companies, and societies, for the better.